Learning objective
Explain costs, revenue, and funding, reproduce the worked example and justify a decision in the case study.
Before you begin
Testing a solution
Understand
An entrepreneur separates required funds, unit cost, revenue, margin, and cash timing.
Worked example
Selling at a profit does not guarantee enough cash if payments arrive late.
Analysis and common mistakes
Unit margin covers fixed costs only after sufficient sales. Cash also depends on purchase and collection dates. Separate startup funding, profit and available cash.
Case study — reasoning
Ten products cost 100 HTG each and sell for 150: total margin is 500 before fixed costs. If customers pay in a month, today’s 1,000 HTG purchase still needs funding.
Knowledge check
Summary
An entrepreneur separates required funds, unit cost, revenue, margin, and cash timing.
Sources for further study and verification
AI-assisted draft · Educator review not completed · Unofficial supplementary resource